of the fear that investors may lose a packet.
Another fact is that it has no central bank that stands behind and cab be regulated by any state. Some experts agree that bubble could burst at any moment. There had been incidents of value collapse.
Many have labeled Bit coins as a “fool’s asset”. It is said so because Bit coin is the only way to make money for many and they fish for a greater fools and sell it to them for a higher price. It is speculative investment and is a sort of gambling. Iconic investor Warren Buffet once said “stay away from it. It is a mirage basically.”
People are quiet worried about it because it is being exploited by animals and hackers. The transactions remain untraceable and it is a blessing for drug dealers and money laundering.
Conventional currencies are prone to laundering and counterfeit and there is no possible way to curtail it fully. In bit coin these risks are more evident and vulnerable because of anonymous modus operandi.
Another noticeable defect is that bit coin still is in the growing stage. It has to evolve to reach its full and final potential. In order to make it more secure and accessible, new features, services and tool are in the anvil.
Bitcoin has some merits too. It offers huge profits. It makes it possible to send and get money anywhere in the world. At present it is free of fees or charges or maybe low fees within bitcoin payments.
Bitcoin requires people to be educated about it to apply in the daily transactions. It is volatile because there is limited amount of coins and demand for them increases day by day.
Many are of the opinion that Bit coin has entered its bubble phase, but that would not stop it from being a fad among those looking for investments.The other side of the story is that there are many countries who have refrained from giving it a legal status for example India.